At the Oct . 4 South Windsor Town Council meeting , Ralph Palumbo , one of the project principals of Connecticut Studios , announced their intention of holding a groundbreaking ceremony on Oct . 18 .

Although some have thought that it seemed like a long process , Mayor John Pelkey said , “ It was done correctly and carefully , and with the Town’s best interest in mind . ” Pelkey highlighted the added infrastructure value that the project will fund along the 291 corridor in terms of roads and sewer , as well as the regional economics of the new business and the quality of the buildings .

“ I’m very pleased that we are at the point for announcing a groundbreaking , ” said Councilor Kathryn Hale , adding , “ I am thrilled that this project is moving ahead . ”

According to Hale , only a portion of the increase in real estate taxes is being forfeited via the tax increment financing ( TIF ) bonds . The town will still receive the personal property taxes to be levied on the approximately $ 33 million dollars worth of equipment . Hale estimated the personal property taxes will be valued at approximately $ 650 , 000 per year.

Although town council has agreed in principal to the TIF bonds , the final terms are still under review by the town’s attorney . According to Palumbo and South Windsor Town Manager Matthew Galligan , the other financing instruments have been secured , details of which will be available soon for public disclosure .

It was acknowledged that the groundbreaking ceremony is symbolic and quasi-political ; the true construction will not begin until the end of the fourth quarter of 2010 or beginning of the first quarter of 2011 . The ceremony will underscore that the project is , in fact , happening , which will serve as a way of preserving and promoting the film tax credits .

After welcoming Palumbo and CT Studios to South Windsor , councilor Gary Bazzano challenged Pelkey’s and Hale’s earlier implications that the project cost the town nothing . However , Galligan pointed out that the staff time and consulting fees were used to make the overall property attractive to business , whether that ended up being CT Studios or another company entirely .

“ I want to be sure at the end of the day that our reputation is pure as the driven snow , ” said councilor Tom Delnicki . He expressed concerns about the impact on the town’s financial rating , if the project should default .

Similar concerns were raised by councilor Cary Prague , who sought clarification about the complex structure of the project financing . Prague noted that approximately 26 acres of town land will be involved in this project . This land was given to the town by the state at the completion of the 291 corridor . If the land is encumbered as loan collateral , and the loan is defaulted , Prague questioned who would ultimately own that land . While Galligan explained that much of the land will revert back to the town in terms of road and sewer infrastructure , Palumbo did acknowledge that some four acres will be fully encumbered under Phase II of the project .

In reply to the turn of the discussion to the project possibly defaulting , Palumbo said , “ My personal finances are at stake . ” The project principals are backing the loans with millions of dollars of personal money . “ I’m not a movie person , ” acknowledged Palumbo , “ but I know how to manage real estate . ”

Councilor Hale asked Dan Marsh of the National Development Council , a consulting firm hired by the town , to address the issue of the town’s security . “ The town has first priority on collecting taxes , ” said Marsh , adding , “ Yes , the town is well-protected . ” He also reiterated that the infrastructure will always belong to the town .

“ On the brighter side , ” said Pelkey , “ this will bring a lot of jobs . It’s a job creator . ” CT Studios will be hiring contractors during the construction phase , and will have a staff of 100 employees , once the business is operational .